ISPT has elected to sell the Kiama Village Centre, on the NSW South Coast to Woolworths for $49m.
The Centre, located at 143 Terralong Street occupies a 1.7ha site and currently contains a Woolworths supermarket, BWS and 20 specialty tenancies.
ISPT acquired the 5,191sqm Centre in 2014 for $38m from Ganellen in a deal which reflected a yield of 6.83%. In 2019, ISPT attempted to obtain Council support for an $18 million redevelopment of the Centre with the inclusion of Aldi, however the DA was knocked back unanimously by councillors and planning staff due to inadequate parking, setback issues and poor street activation.
Woolworths development group, Fabcot, jumped on the opportunity to control the site, entering into contracts in late April 2021. The transaction settled on the 4th June 2021.
Woolworths is proposing to submit a fresh development application to Kiama Council in the coming months (presumably without Aldi), with plans to renew and improve the shopping centre to include a new full-line Woolworths Supermarket and online Drive Through & Pick Up facility, additional car parking for customers and an improved specialty retail area. The redevelopment will inject more than $10 million of investment into the local area, creating 80 new jobs during construction.
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